| 1 | 1 | | 89R2013 ANG-D |
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| 2 | 2 | | By: Goodwin H.B. No. 1424 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the structuring of water rates by retail public |
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| 10 | 10 | | utilities to promote water conservation; authorizing a fee. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter Z, Chapter 552, Local Government |
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| 13 | 13 | | Code, is amended by adding Section 552.9065 to read as follows: |
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| 14 | 14 | | Sec. 552.9065. WATER CONSERVATION RATE AND FEE. The |
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| 15 | 15 | | governing body of a municipality may by ordinance: |
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| 16 | 16 | | (1) structure the municipality's rates for water |
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| 17 | 17 | | service in a manner that promotes water conservation by all of the |
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| 18 | 18 | | municipality's water customers so that customers in a class who |
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| 19 | 19 | | consume greater amounts of water pay a higher rate per unit volume |
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| 20 | 20 | | than customers in a class who consume lesser amounts of water; and |
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| 21 | 21 | | (2) establish an excessive use fee for water customers |
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| 22 | 22 | | whose water usage is greater than the water usage of a percentage of |
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| 23 | 23 | | the municipality's other customers. |
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| 24 | 24 | | SECTION 2. The heading to Section 13.182, Water Code, is |
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| 25 | 25 | | amended to read as follows: |
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| 26 | 26 | | Sec. 13.182. JUST AND REASONABLE RATES; WATER CONSERVATION |
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| 27 | 27 | | RATE STRUCTURE AND FEE. |
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| 28 | 28 | | SECTION 3. Section 13.182, Water Code, is amended by adding |
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| 29 | 29 | | Subsection (b-2) to read as follows: |
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| 30 | 30 | | (b-2) In establishing a utility's rates, the regulatory |
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| 31 | 31 | | authority by rule or ordinance may authorize a utility to: |
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| 32 | 32 | | (1) structure the utility's rates in a manner that |
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| 33 | 33 | | promotes water conservation by all of the utility's customer |
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| 34 | 34 | | classes so that customers in a class who consume greater amounts of |
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| 35 | 35 | | water pay a higher rate per unit volume than customers in a class |
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| 36 | 36 | | who consume lesser amounts of water; and |
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| 37 | 37 | | (2) establish an excessive use fee for customers whose |
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| 38 | 38 | | water usage is greater than the water usage of a percentage of the |
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| 39 | 39 | | utility's other customers. |
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| 40 | 40 | | SECTION 4. Chapter 13, Water Code, is amended by adding |
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| 41 | 41 | | Subchapter O to read as follows: |
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| 42 | 42 | | SUBCHAPTER O. WATER CONSERVATION RATE AND FEE |
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| 43 | 43 | | Sec. 13.551. APPLICABILITY. This subchapter applies to a |
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| 44 | 44 | | retail public utility that is not subject to Subchapter F or Section |
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| 45 | 45 | | 552.9065, Local Government Code. |
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| 46 | 46 | | Sec. 13.552. TIERED CONSERVATION RATE STRUCTURE. A retail |
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| 47 | 47 | | public utility may establish a water conservation rate that |
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| 48 | 48 | | promotes water conservation by all of the utility's customer |
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| 49 | 49 | | classes so that customers in a class who consume greater amounts of |
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| 50 | 50 | | water pay a higher rate per unit volume than customers in a class |
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| 51 | 51 | | who consume lesser amounts of water. |
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| 52 | 52 | | Sec. 13.553. EXCESSIVE USE FEE. A retail public utility may |
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| 53 | 53 | | establish an excessive use fee for the utility's customers whose |
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| 54 | 54 | | water usage is greater than the water usage of a percentage of the |
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| 55 | 55 | | utility's other customers. |
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| 56 | 56 | | SECTION 5. This Act takes effect September 1, 2025. |
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